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Stop, Look & Listen: Railroad Retirement Benefits Q&A

Answers are provided by Robert S. Kaufman

FRA Employee Still Subject to Tier 2 Deductions Past Full Retirement Age

(Posted May 17, 2014)

Question 1130: I am vested with 10-1/2 years with a railroad. Currently I have 29 years with the Federal Railroad Administration. If I file for an annuity with the RRB at 66-1/2 years of age, will my continued employment with FRA impact the annuity amount? I do not have a broken Current Connection between the railroad and FRA.

Answer: Your continued employment with FRA is considered to be "Last Person Employment." Your Tier 2 will be reduced as long as you continue employment with the FRA. You will lose $1 in Tier 2 for each $2 that you earn with FRA up to a maximum of 50% reduction in your Tier 2.

Because you will be past your full retirement age, your earnings will not affect your Tier 1.

Important notice:

Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.

The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.

Copyright 1997-2017 Robert S. Kaufman
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